From the Publisher: What's the solution to the world's growing energy problem? PERFECT POWER. Electric usage is rising. Fuel costs are rocketing. Blackouts are happening more frequently. Why? Because our electrical power system-built on a vast network of resources including nuclear energy,...

This paper argues against the rapid implementation of capacity mechanisms in Germany. There is no systematic, non-temporary market failure in the German wholesale electricity market which could justify such a Government intervention. Neither the low elasticity of demand nor debatable public good...